Country Report Tajikistan March 2011

The domestic economy: Aluminium production falls by 3% in 2010

Production at the Tajikistan Aluminium Company (Talco), the country's largest industrial enterprise, was reported at just below 349,000 tonnes in 2010, a year-on-year reduction of 2.9% and falling short of the targeted production of just under 402,000 tonnes. This decline in production at the plant, which has an annual production capacity of 517,000 tonnes, followed a fall of 10% in output in 2009, which was a deliberate measure to conserve energy. Despite the fall in production in 2010, earnings from aluminium exports rose by more than 25%, in view of the significant rise in global prices for aluminium (see Foreign trade and payments). In order to take advantage of high global prices, according to management sources, Talco plans to invest US$100m to upgrade its equipment, train staff and increase production by over 8%, to just below 378,000 tonnes in 2011. Production in January 2011 was reported at just over 30,000 tonnes, a fall of 0.5% year on year.

In order to maintain its profits, Talco has opposed higher electricity tariffs that are expected to be imposed on industrial consumers in 2011. Talco claims that it has been a loyal customer of Barqi Tojik (Tajik Electricity), having paid over US$340m for electricity in the past five years, equivalent to 70% of the state electricity company's total revenue, while consuming around 30% of the country's electricity output. Electricity prices in Tajikistan are S0.09 (2 US cents) per kwh for residential customers and S0.21/kwh for industrial enterprises, except for Talco, which pays S0.082/kwh.

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